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Art Dedication FeePlanning & Economic Development MEMORANDUM TO: Honorable Mayor and Hopkins City Council Members FROM: Kersten Elverun i ctor of Planning & Development DATE: July 5, 2012 SUBJECT: Art Dedication Fee A discussion of the concept of an art dedication fee for projects requesting a zoning change to a Planned Unit Development (PUD) has been scheduled for the July 10, 2012, City Council work session. The idea of requesting a contribution to the City's public art endeavors came about with the review of Swervo Development's application for PUD zoning on the former Mayon Plastic site and staff is interested in hearing if this concept is one that should be pursued with future PUD projects. As a basis for the discussion, I have identified what may be some of your questions. Why did staff suggest an art dedication fee for the former Mayon Plastics redevelopment project? The developer was seeking PUD zoning so that parking could occur in the front yard setback of the site. They were also asking for a reduction on the drive lane width. Staff reviewed the site plan and suggested that bike parking, restrictions on backlit signage and a public art contribution would enhance the project and offset the items the developer would be granted. An art dedication fee was thought to be an appropriate way to further the action step identified in the recent goal -setting work of strengthening the image of Hopkins as arts community. Is Staff recommending the adoption of a policy for Art Dedication Fees? Staff is not recommending that an art dedication fee be required through a formal policy, rather it is negotiated based on the project and the owner's interest. The intent is not to be onerous but rather to give future developer's an opportunity to contribute to the public art of the community. How is this fee different than the Park Dedication Fee? The Park Dedication Fee is a set fee collected as part of a re -platting of a property, which may or may not require a PUD zoning change. Likewise, a PUD zoning request does not always involve re -platting. It is enforced through a formal policy, but has been waived on a case-by-case basis. Is it envisioned that every application for a PUD zoning change pay an art dedication fee? No, every project will be reviewed based on its own characteristics. If there are other elements that are more important to the overall project, those will be considered first. If the project can not financially support a contribution, that will also be taken in to account. How often is the City asked for PUD zoning? In Hopkins, it is fairly rare that the City approves PUD zoning requests. PUD's are generally reserved for large projects on sites with unique circumstances. Generally it is sought by the developer to avoid one or more of the requirements of the underlying zoning such as setbacks, height or signage restrictions, and thus avoiding the need for a variance. It gives the City the opportunity to then ask for things that in return make the project better for the community. In the past 10 years, PUD zoning has been used for the Marketplace Lofts, Excelsior Crossings and Marketplace & Main projects. In the future, it is envisioned that it may be used for the former BP site on Blake Road and the Klodt development on Wh Avenue. How will the art dedication fee be used? Staff is envisioning that the fee will be used a variety of ways and in a variety of forms. For example, if the developer would like to install their own art they would be allowed to do that in lieu of a fee (and approved through the site plan review process). Any fees collected could be used to support Hopkins Artstreet or to be used for commissioned art that may be placed at entrances to the City or in parks or other public spaces. It could also be used on the site it was generated from, as an art form that both the City and property owner agree to after the project is completed. How the fees are used is an area of further discussion at the work session. Do other cities charge art dedication fees? Staff is aware that the city of St. Louis Park has collected an art dedication fee on past projects. They do not have a set amount but rather it is negotiated separately for each project. I look forward to the July 10, 2012, work session to discuss this further.